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Message
Do I have my 401k% in the right funds?
Posted on 6/13/24 at 3:14 pm
Posted on 6/13/24 at 3:14 pm
I have never really paid much attention to what my stuff is in since I set it up 22 years ago. About 12 years ago I did have a guy I work with take a look at it because he said he got 28% return and I was at 1%.
Turns out I had basically been putting 3% into a savings account for 12 years getting almost zero return
I just copied what he was doing back then but he was 20 years older so I think I should take a look at it again and see what the money board thinks of my mix.
I did move all the money I still had in bonds into the S&P 500 because of a thread I saw on here a couple months ago. Funny thing was I didn’t even know what the S&P was but I had moved money into it 13 years ago.
I’ve doubled my % 12 years ago from 3 to 6%.
I’ll be editing this thread for a minute with the % mix:
I’m at 11.27% for the year so far.
T Rowe Price 2040 Fund 3% Mix 9.29% return
T Rowe Price 2050 Fund 5% Mix 10.21% return
DFA Large Cap Value 11% Mix 7.06% return
Fidelity 500 Index Fund 29% Mix 14.31 % return
Artisan Mid Cap 5% Mix 4.38% return
Vanguard Small Cap Institutional 5% Mix 3.77% return
Fidelity Adv International Capital Appreciation 9% Mix 9.59% return
Company Stock 33% Mix 15.33% return
Turns out I had basically been putting 3% into a savings account for 12 years getting almost zero return
I just copied what he was doing back then but he was 20 years older so I think I should take a look at it again and see what the money board thinks of my mix.
I did move all the money I still had in bonds into the S&P 500 because of a thread I saw on here a couple months ago. Funny thing was I didn’t even know what the S&P was but I had moved money into it 13 years ago.
I’ve doubled my % 12 years ago from 3 to 6%.
I’ll be editing this thread for a minute with the % mix:
I’m at 11.27% for the year so far.
T Rowe Price 2040 Fund 3% Mix 9.29% return
T Rowe Price 2050 Fund 5% Mix 10.21% return
DFA Large Cap Value 11% Mix 7.06% return
Fidelity 500 Index Fund 29% Mix 14.31 % return
Artisan Mid Cap 5% Mix 4.38% return
Vanguard Small Cap Institutional 5% Mix 3.77% return
Fidelity Adv International Capital Appreciation 9% Mix 9.59% return
Company Stock 33% Mix 15.33% return
This post was edited on 6/13/24 at 3:41 pm
13
Posted on 6/13/24 at 3:32 pm to Rize
How old are you and how much longer do you plan to work?
Thanks
Thanks
Posted on 6/13/24 at 3:40 pm to kaaj24
The top 2 are target date funds, so, you need to make sure they align with an anticipated retirement date.
I reallocated my 401k about 2 years ago and dropped all the mid and small cap stuff and went 33/33/33 sp500, large value and large growth. I very recently changed that to 50/50 sp500 and large growth. I’m a few decades away from retirement.
I reallocated my 401k about 2 years ago and dropped all the mid and small cap stuff and went 33/33/33 sp500, large value and large growth. I very recently changed that to 50/50 sp500 and large growth. I’m a few decades away from retirement.
Posted on 6/13/24 at 3:44 pm to kaaj24
quote:
How old are you and how much longer do you plan to work? Thanks
I’ll be 43 in a week. I’d like to retire in 10 but it will probably be 15 years.
Posted on 6/13/24 at 3:48 pm to 632627
quote:
The top 2 are target date funds, so, you need to make sure they align with an anticipated retirement date. I reallocated my 401k about 2 years ago and dropped all the mid and small cap stuff and went 33/33/33 sp500, large value and large growth. I very recently changed that to 50/50 sp500 and large growth. I’m a few decades away from retirement.
I may retire before 2040 and I don’t see anyway I’ll be working close to 2050. Should I move out of those target date funds?
Posted on 6/13/24 at 3:49 pm to Rize
I just have everything in an S&P 500 index. I’m 34 and figure the money saved on fees alone is worth it.
Posted on 6/13/24 at 4:02 pm to TheWalrus
quote:
I just have everything in an S&P 500 index. I’m 34 and figure the money saved on fees alone is worth it.
I wish I would have paid closer attention and got my shite together in my late 20’s and learned a lot more.
Posted on 6/13/24 at 4:12 pm to Rize
Your current portfolio is way over complicated.
The retirement date funds are meant as a one stop option that auto rebalances tour portfolio among various funds to match a risk profile approximately suitable for your expected retirement date. If you use them, choose one and go 100%.
Or, I'd just go 100% S&P500 or total market index fund and accept the risk.
You could also pick a 2 or 3 fund portfolio w a mix based on your risk/retirement date and rebalance yourself every year or so.
1. Is easiest and balances risk (you could pick a later date fund for a bit more growth potential/risk)
2. Is easy but no balance to even out market corrections
3. More complicated mostly because you have to figure out your allocation and select funds. Plus it involves periodic work on your part to rebalance and you haven't shown the interest to follow through so I would avoid option 3 unless you are suddenly interested and motivated to learn and stay engaged.
The retirement date funds are meant as a one stop option that auto rebalances tour portfolio among various funds to match a risk profile approximately suitable for your expected retirement date. If you use them, choose one and go 100%.
Or, I'd just go 100% S&P500 or total market index fund and accept the risk.
You could also pick a 2 or 3 fund portfolio w a mix based on your risk/retirement date and rebalance yourself every year or so.
1. Is easiest and balances risk (you could pick a later date fund for a bit more growth potential/risk)
2. Is easy but no balance to even out market corrections
3. More complicated mostly because you have to figure out your allocation and select funds. Plus it involves periodic work on your part to rebalance and you haven't shown the interest to follow through so I would avoid option 3 unless you are suddenly interested and motivated to learn and stay engaged.
This post was edited on 6/13/24 at 8:19 pm
Posted on 6/13/24 at 4:43 pm to Rize
quote:
Company Stock 33%
That’s a pretty big portion of your overall account. I would limit this to maybe 10%.
Posted on 6/13/24 at 4:44 pm to Rize
Blue Chip T Rowe Price.
Them boys at T Rowe price know what they are doing.
Them boys at T Rowe price know what they are doing.
Posted on 6/13/24 at 4:59 pm to Rize
I’m 95% s&p 500
Posted on 6/13/24 at 6:01 pm to Rize
Are you at least maxing out your contributions to match your employer contribution? Mine is 6% as that's the max the company adds to the account. Making monthly contributions to the account? Assume the administrator only offers a set number of mutual funds or ETFs, so guess that'd be a question overall.
Best of luck retiring in 10-15 years. Don't know how much we're talking about and it's none of our business, but given the comments on the past decisions, is it logical to think you'd have enough in a 401k to do that (absent other sources or retirement income and/or maybe working at another job you like?). Kids. Health issues. Marital problems, natural disasters, homeowner issues always seem to get in the way, so hoping you have a strategy for accumulating wealth outside of your retirement accounts to take care of unexpected contingencies. And you're adequately insured where it matters (health/auto/short term disability) through hopefully your employer?
My thoughts...
1. Too many funds overall. Maybe just 2 or 3 and put in the amounts at the mix you think makes sense.
2. Target funds are just that. If you like them, just pick one that targets your retirement age. They tend to underperform other types of funds, but with less risk because of their nature, so keep that in mind. But, they're balanced for your objectives and a lot of people don't diversify enough, so that's a plus.
3. Company stock is risky unless the underlying fundamentals are there and you know what to expect? Are they meeting or exceeding earnings estimates each quarter? Do you know what the analysts that follow them think in terms of forecasts? (This was discussed in another thread, but you can go to Yahoo Finance to see analysis. I like Stock Analysis best). This assumes it's publicly traded.
4. I really like Fidelity 500 Index Fund (FXAIX) for long term growth and consistency. I have it in my 401k. Consistently among Lipper or Morningstar's top Index Funds.
5. Look at Schwab US Dividend Equity ETF (SCHD), an old stalwart that's poised to rebound based upon some of the expected consumer activities if/when rates are cut.
6. Get some International exposure with the Amplify Cwp International Enhanced Div ETF (IDVO).
Overall, to me, the key is not F'in around with your retirement money with the sexy pick du jour. IF you have extra funds, you can invest in another account. Dollar cost average in solid Index Funds with a proven track record.
My vote (assuming your administrator has these to offer. Mine does through Fidelity):
FXAIX - 60%
SCHD - 20%
IDVO - 10%
Company Stock - 10%
Great that you're sharing this, and I wish you the best!
Best of luck retiring in 10-15 years. Don't know how much we're talking about and it's none of our business, but given the comments on the past decisions, is it logical to think you'd have enough in a 401k to do that (absent other sources or retirement income and/or maybe working at another job you like?). Kids. Health issues. Marital problems, natural disasters, homeowner issues always seem to get in the way, so hoping you have a strategy for accumulating wealth outside of your retirement accounts to take care of unexpected contingencies. And you're adequately insured where it matters (health/auto/short term disability) through hopefully your employer?
My thoughts...
1. Too many funds overall. Maybe just 2 or 3 and put in the amounts at the mix you think makes sense.
2. Target funds are just that. If you like them, just pick one that targets your retirement age. They tend to underperform other types of funds, but with less risk because of their nature, so keep that in mind. But, they're balanced for your objectives and a lot of people don't diversify enough, so that's a plus.
3. Company stock is risky unless the underlying fundamentals are there and you know what to expect? Are they meeting or exceeding earnings estimates each quarter? Do you know what the analysts that follow them think in terms of forecasts? (This was discussed in another thread, but you can go to Yahoo Finance to see analysis. I like Stock Analysis best). This assumes it's publicly traded.
4. I really like Fidelity 500 Index Fund (FXAIX) for long term growth and consistency. I have it in my 401k. Consistently among Lipper or Morningstar's top Index Funds.
5. Look at Schwab US Dividend Equity ETF (SCHD), an old stalwart that's poised to rebound based upon some of the expected consumer activities if/when rates are cut.
6. Get some International exposure with the Amplify Cwp International Enhanced Div ETF (IDVO).
Overall, to me, the key is not F'in around with your retirement money with the sexy pick du jour. IF you have extra funds, you can invest in another account. Dollar cost average in solid Index Funds with a proven track record.
My vote (assuming your administrator has these to offer. Mine does through Fidelity):
FXAIX - 60%
SCHD - 20%
IDVO - 10%
Company Stock - 10%
Great that you're sharing this, and I wish you the best!
This post was edited on 6/13/24 at 6:02 pm
Posted on 6/13/24 at 6:20 pm to Nole Man
Maybe this will be unpopular but I'd just go with VTWAX to add international exposure.
Posted on 6/13/24 at 6:40 pm to Rize
Insure you have a trustworthy investor and let it ride without touching it no matter what the market does. Raises??? 1/2 to investments, tax refund? Don’t buy car, boat.. pay down debt.
It’s not the amount you have for retirement but how you spend it and what financial shape one is in when you get there.
If you retire with lots of debt you are sunk.
After raising 3 boys I was blessed to retire 3 years early and did not start saving hard until my late 40’s and retired at 62. The cut of SS was minimal compared to leaving $$ in the market and quality of enjoying life since working at 16.
We made up our minds up to get completely out of debt with a 5 year plan leading up to retirement.
Outstanding credit rating, no credit card debt or car payment, etc. Living off SS and pull from investments for travel, etc.
Take note that Medicare, secondary insurance is going to be roughly 28-30% of your monthly budget at retirement. Considering mortgages require DTI of 35-40% there is not much wiggle room.
What truly allows you to retire and enjoy life? Debt free
It’s not the amount you have for retirement but how you spend it and what financial shape one is in when you get there.
If you retire with lots of debt you are sunk.
After raising 3 boys I was blessed to retire 3 years early and did not start saving hard until my late 40’s and retired at 62. The cut of SS was minimal compared to leaving $$ in the market and quality of enjoying life since working at 16.
We made up our minds up to get completely out of debt with a 5 year plan leading up to retirement.
Outstanding credit rating, no credit card debt or car payment, etc. Living off SS and pull from investments for travel, etc.
Take note that Medicare, secondary insurance is going to be roughly 28-30% of your monthly budget at retirement. Considering mortgages require DTI of 35-40% there is not much wiggle room.
What truly allows you to retire and enjoy life? Debt free
This post was edited on 6/13/24 at 6:45 pm
Posted on 6/13/24 at 8:08 pm to Nole Man
quote:
Are you at least maxing out your contributions to match your employer contribution? Mine is 6% as that's the max the company adds to the account. Making monthly contributions to the account? Assume the administrator only offers a set number of mutual funds or ETFs, so guess that'd be a question overall. Best of luck retiring in 10-15 years. Don't know how much we're talking about and it's none of our business, but given the comments on the past decisions, is it logical to think you'd have enough in a 401k to do that (absent other sources or retirement income and/or maybe working at another job you like?). Kids. Health issues. Marital problems, natural disasters, homeowner issues always seem to get in the way, so hoping you have a strategy for accumulating wealth outside of your retirement accounts to take care of unexpected contingencies. And you're adequately insured where it matters (health/auto/short term disability) through hopefully your employer? My thoughts... 1. Too many funds overall. Maybe just 2 or 3 and put in the amounts at the mix you think makes sense. 2. Target funds are just that. If you like them, just pick one that targets your retirement age. They tend to underperform other types of funds, but with less risk because of their nature, so keep that in mind. But, they're balanced for your objectives and a lot of people don't diversify enough, so that's a plus. 3. Company stock is risky unless the underlying fundamentals are there and you know what to expect? Are they meeting or exceeding earnings estimates each quarter? Do you know what the analysts that follow them think in terms of forecasts? (This was discussed in another thread, but you can go to Yahoo Finance to see analysis. I like Stock Analysis best). This assumes it's publicly traded. 4. I really like Fidelity 500 Index Fund (FXAIX) for long term growth and consistency. I have it in my 401k. Consistently among Lipper or Morningstar's top Index Funds. 5. Look at Schwab US Dividend Equity ETF (SCHD), an old stalwart that's poised to rebound based upon some of the expected consumer activities if/when rates are cut. 6. Get some International exposure with the Amplify Cwp International Enhanced Div ETF (IDVO). Overall, to me, the key is not F'in around with your retirement money with the sexy pick du jour. IF you have extra funds, you can invest in another account. Dollar cost average in solid Index Funds with a proven track record. My vote (assuming your administrator has these to offer. Mine does through Fidelity): FXAIX - 60% SCHD - 20% IDVO - 10% Company Stock - 10% Great that you're sharing this, and I wish you the best!
Thanks for all the info. I had the stock at 10% but with my ESOP and the performance of the stock it’s grown to 33% of my 401k. They just announced a 4 to 1 split and it’s gone from $30 something a share to almost $700 in 12 to 13 years. I’m hesitant to sell my company stock because I’ve sold a lot over the years and now I wish I never would have.
They cap me at 6% so I can’t put in more into my 401k, so I have an Edward Jones guy back door a Roth for me every year.
This post was edited on 6/13/24 at 8:13 pm
Posted on 6/13/24 at 8:27 pm to Rize
It keeps getting worse, you're using an EJ guy.
33% company stock is aggressive. Your income is already dependent on the company's success why line up your retirement funds with them too. Plus, you are contributing more each year via ESOP.
Are you capped at 6% 401k contribution or just 6% match?
Has your EJ guy looked at this allocation mess? If not, how can he advise you how to invest rest of portfolio to be properly balanced? If so, why didnt EJ guy advise you to reduce.company exposure and create a portfolio w some semblance of a plan?
33% company stock is aggressive. Your income is already dependent on the company's success why line up your retirement funds with them too. Plus, you are contributing more each year via ESOP.
Are you capped at 6% 401k contribution or just 6% match?
Has your EJ guy looked at this allocation mess? If not, how can he advise you how to invest rest of portfolio to be properly balanced? If so, why didnt EJ guy advise you to reduce.company exposure and create a portfolio w some semblance of a plan?
Posted on 6/13/24 at 8:46 pm to Rize
GTFo target date funds and dump EJ
we told you this before.
nobody here uses EJ.
i gave you the link before why they are shite
we told you this before.
nobody here uses EJ.
i gave you the link before why they are shite
Posted on 6/13/24 at 8:47 pm to Rize
My work retirement is 80% s&p 500 and 20% target date
Posted on 6/13/24 at 10:05 pm to TorchtheFlyingTiger
quote:
It keeps getting worse, you're using an EJ guy. 33% company stock is aggressive. Your income is already dependent on the company's success why line up your retirement funds with them too. Plus, you are contributing more each year via ESOP. Are you capped at 6% 401k contribution or just 6% match? Has your EJ guy looked at this allocation mess? If not, how can he advise you how to invest rest of portfolio to be properly balanced? If so, why didnt EJ guy advise you to reduce.company exposure and create a portfolio w some semblance of a plan?
I am capped at 6% on my 401k contribution. EJ guy hasn’t really looked at my 401k.
Most of the people I work with have their 401k at 50% to 100% of our stock. They have been killing it but I refuse to put 100% of my 401k into it.
Posted on 6/14/24 at 8:47 am to Fat Bastard
quote:
GTFo target date funds
repeat: GTFo target date funds
This post was edited on 6/14/24 at 8:49 am
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